ePLDT: Recent Tower Sales Generate $220 Million For PLDT

Mar 21, 2023 | Posted by Abdul-Rahman Oladimeji

Under an agreement with Frontier Tower Associates Philippines for a sale and leaseback, PLDT has consented to sell slightly over 1,000 communication towers. The agreement, which would likely cost the Filipino telecom company $220 million, continues the company's plan to market its tower assets. This most recent transaction comes after news broke in October last year that PLDT was preparing to sell 2,000 of its towers to earn money for network development. According to Bloomberg, KKR-backed Frontier will purchase 1,012 towers from PLDT subsidiaries Smart Communications Inc. as well as Digitel Mobile Phils. Inc. 

Prior to December 2022, Frontier had a deal with Globe Telecom to purchase 3,529 towers in the Philippines. Last year, PLDT disclosed plans to sell half of its property, or about 6,000 towers, for more than $950 million before disclosing additional plans to sell towers. The potential of selling a "substantial minority interest" in its data center assets has lately been discussed within PLDT. The company is considering finding an investor for its data center business while consulting with financial advisors; a deal may value the company at $700 million to $800 million. According to people acquainted with last month's situation, talks are in the early stages, and the corporation may decide against a transaction. The company would have been valued at about $500 million if PLDT had sold the data centers in 2021, but the plan was ultimately shelved.

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